Quant Mutual Fund has launched a new open-ended equity scheme, Quant Consumption Fund, which aims to generate capital appreciation and provide long-term growth opportunities by investing in a portfolio of consumption-driven companies. The NFO for the scheme opened on January 5, 2024, and will close on January 18, 2024. The minimum subscription amount is Rs 5,000. There is no entry load, but a 1% exit load will be applicable for redemptions or switchouts within 15 days of allotment.
Consumption funds are a type of thematic equity mutual fund that invests in companies benefiting from consumer spending. Think FMCGs, autos, durables, telecom, and consumer services. They aim for long-term capital growth by picking stocks from these sectors, betting on rising consumer demand and economic growth. These funds can deliver high returns but are riskier than diversified funds due to concentrated sector exposure.
The primary investment objective of the scheme is to generate capital appreciation & provide long-term growth opportunities by investing in a portfolio of Consumption driven companies. There is no assurance that the investment objective of the Scheme will be realized.
| Asset Class Allocation | Normal Allocation (% of net assets) | Risk Profile | |
| Minimum | Maximum | ||
| Equity & Equity related instruments of Consumption and consumption related sectors | 80 | 100 | Very High |
| Equity and equity related instruments other than companies of Consumption and consumption related sectors | 0 | 20 | Very High |
| Debt and money market instruments | 0 | 20 | Low to Medium |
| Foreign Equity and Equity related instruments and Overseas ETFS | 0 | 20 | Very High |
| Units issued by REITs & InvITs | 0 | 10 | Very High |
S&P BSE Consumer Discretionary Goods & Services Index TRI
Mr. Ankit Pande, 37 years Fund Manager (Equity)
Mr. Sanjeev Sharma, 44 years Fund Manager (Debt)
Mr. Vasav Sahgal, 28 years Fund Manager (Equity)
| Funds | Expense Ratio (%) | Net Assets (Cr) | 6 Month Returns (%) | 1 Year Returns (%) | 3 Year Returns (%) | 5 Year Returns (%) | 10 Year Returns (%) |
| Aditya Birla Sun Life India GenNext Fund – Direct Plan | 0.81 | 4,377 | 15.55 | 28.46 | 20.48 | 19.29 | 19.75 |
| Baroda BNP Paribas India Consumption Fund – Direct Plan | 0.74 | 1,131 | 15.33 | 32.61 | 21.05 | 21.26 | — |
| Canara Robeco Consumer Trends Fund – Direct Plan | 0.90 | 1,261 | 16.26 | 30.62 | 21.82 | 21.11 | 20.51 |
| ICICI Prudential Bharat Consumption Fund – Direct Plan | 1.23 | 2,037 | 21.08 | 36.39 | 22.92 | — | — |
| Mirae Asset Great Consumer Fund – Direct Plan | 0.48 | 2,904 | 17.59 | 35.94 | 25.09 | 20.29 | 19.98 |
| Nippon India Consumption Fund – Direct Plan | 1.20 | 594.00 | 18.08 | 30.58 | 25.52 | 22.48 | 16.82 |
| Nippon India ETF Nifty India Consumption | 0.31 | 35.00 | 14.37 | 28.12 | 17.89 | 15.34 | — |
| SBI Consumption Opportunities Fund – Direct Plan | 1.03 | 1,791 | 16.79 | 33.13 | 26.33 | 19.74 | 18.45 |
| Sundaram Consumption Fund – Direct Plan | 1.34 | 1,349 | 19.27 | 32.47 | 19.97 | 16.03 | 17.96 |
| Tata India Consumer Fund – Direct Plan | 0.81 | 1,763 | 20.19 | 39.18 | 21.71 | 18.12 | — |
| UTI India Consumer Fund – Direct Plan | 1.59 | 539.00 | 12.97 | 24.80 | 15.17 | 14.33 | 13.21 |
Consumption funds are a form of thematic mutual fund that invests in firms in India that are influenced by consumer behaviour. This subject is influenced by macroeconomic trends as well as structural changes in consumer lives and preferences. Consumption has provided some fantastic returns in recent years and is a very appealing subject over the long run, according to historical statistics.
Nifty India Consumption TRI has delivered over 14.5% CAGR returns over the previous ten years.
Consumption Funds can produce long-term capital growth by investing in firms that are involved in or projected to profit from consumption. Some of the Consumption sectors can provide sustained growth even during an economic slump. To summarise, it feels that the future of consuming as a subject will be incredibly fascinating. Consumption accounts for 60% of India’s GDP and occupies a considerable portion of the listed space.
In this case, investing in a mutual fund that provides access to the potential inherent in the topic is the greatest approach to gain from the perpetual theme of consumption.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.
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